FAQs

Q. Does availinga teaser loan make sense?

Availinga temporarily discounted home loan without taking-protracted viewone’s financial position is not advisable One should be awarethe manner"which one’s finances will be affected afterteaser period is overreal-time lending rates kick in

Q. Does it make sense to buy-home now?

That dependsone’s actual objectiveslevelneed If one is-first-time home buyer attempting to timemarket makes little sense Any correction will be-brief phenomenonprices inevitably rise again This is-risky game that only investors should play

Q. In whose name arestamps required to be purchased?

The stampsrequired to be purchased"the nameany onethe executors toInstrument

Q. Is-POA revocable?

Yes-POA can be either revocable or irrevocable dependingwhat sorta POA one has made

Q. Is there any way byI can claim exemptiontaxcapital gain?

Several optionsavailable for saving capital gains For example"the first place invest"a residential house property or-flat to make investment so as to see that capital gainsexempted Likewise if-person were to makeinvestment"REC or NHAI bonds then also he enjoys complete exemption fromlong-term capital gain payable by him"respectcapital gains due

Q. Whatallimportant documents one should check before buying any property?

While purchasing-property you have to look atapproved layout plan approved building plan ownership documents carryout title search etc

Q. What aredifferent waysinvesting"commercial property?

Therethree ways to invest"commercial real estate - directly buy office space from-developer buy sharesa commercial developer fromstock market or invest"a real estate fund focusedcommercial real estate Asquantuminvestment is usually hugeprospective buyer needs to take more informed decisions

Q. What arefactors to keep"mind while investing"residential property for capital appreciation?

The fundamental aimsany residential property investment should be to maximise yield as well as capital gainsto reducerisk as far as possible To illustrate renovatingembellishing-property makes it eligible for-higher rentmeans maximised yield Property investment aimed at capital gains involves buying real estate cheapselling it at-higher rate thereby maximising ones ROI An astute investor will also buy-well-located property at-high price ifrental market is booming since this makes it possible to rent it out for as long as it takes price to rise again

Q. What arepossible returnsinvesting"commercial versus residential propertyrent?

The rental yield for commercial property is usually 9-12 In contrastyield for residential property is much lower at 3-4

Q. What arerisks associated"buying-flatPower Of Attorney (POA) basis?

Purchasing-flat on-POA basis is not permitted

Q. What arerisks involved"residential property investment?

The risk factor"real estate investment lies"the possibilitybuying at-higher pricehaving to sell at-lower one"a depressed market It is also risky to try timemarket to discernbest time to invest Much like"the stock market it is impossible to predictpointlowest ebb"the real estate market The danger"delaying investment too long is two-fold - firstly one may lose outthe best propertiessecondlymarket may pickaheadones predictions meaning thatlower rates may no longer be available

Q. What aretax implicationssaleany house property commercial or residential?

ForpurposeReal EstateLong-term Capital gain would be only if you holdproperty for more than three years then it is subjected to tax @20 In case you sellproperty"less than three years time then it would become short-term Capital Gainthe same is required to be taxed atprevailing tax schedulethe rate applicable toassessee dependinghis other incomes

Q. What exactly do we mean by-Free Hold flat What areadvantagesdisadvantages if any?

A freehold property flat is onethere is-wholesole owners ownership is fullunconditionalthere is no lessor lessee involved

Q. What is meant bymarket valuethe propertyis Stamp Duty payablethe market valuethe property orconsideration as stated"the agreement?

Market valueproperty isprice atthere is-willing buyera seller agreeing totransferproperty atarm’s length transaction Stamp duty is leviedthe ready reckoner rate oragreement price whichever is higher

Q. What isdifference between builtarea super builtareacarpet area?

Carpet Area Carpet Areaa property is defined asnet usable area frominner sidesone wall to another Carpet Area comprisesthe carpet areathe demised premise toilet areas withindemised premises AHU rooms withindemised premisesdedicated service areas fordemised premises
Built-up Area (BUA) BUA consistscarpet area area covered by innerouter wallsadditional areas mandated byauthority such as flower beds dry balcony etc
Super Built-up Area (SBUA) SBUA consistsBUAthe proportionate area undercommon spacesa building like lobby staircaseselevators

Q. Which areinstruments that attractpaymentStamp Duty?

The instruments like Agreement to Sell Conveyance Deed Exchangeproperty Gift Deed Partition Deed PowerAttorney settlementDeedTransferlease attract Stamp Dutymarket valuethe property

Q. Who is liable to pay Stamp Duty-the buyer orseller?

The buyer is liable to paystamp duty